Question

Your division is considering a project with the following net cash flows (in millions): Period 0...

Your division is considering a project with the following net cash flows (in millions): Period 0 1 2 3 Project A -$25 $5 $10 $17 What is the project's NPV assuming the WACC is 0.08?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=5/1.08+10/1.08^2+17/1.08^3

=$26.70

NPV=Present value of inflows-Present value of outflows

=$26.70-$25

=$1.70 million(Approx).

Add a comment
Know the answer?
Add Answer to:
Your division is considering a project with the following net cash flows (in millions): Period 0...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • NPV Your division is considering two projects with the following cash flows (in millions): 0 1...

    NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$27 $13 $17 $8 Project B -$25 $14 $11 $2 What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ million Project B $ million What are the projects' NPVs assuming the WACC is...

  • NPV Your division is considering two projects with the following cash flows (in millions): 0 2...

    NPV Your division is considering two projects with the following cash flows (in millions): 0 2 3 Project A Project B $29 -$16 $15 $8 $13 $3 $3 $6 a. what are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Project A $ Project B $ what are the projects' NPVs assuming the WACC is 10%? Round...

  • NPV Your division is considering two projects with the following cash flows millions): Project A 19...

    NPV Your division is considering two projects with the following cash flows millions): Project A 19 Project B 17 a. what are the wojects' Nns assuming the wACC is 5%? Round your answer to two decimal places Do not round your intermediate oalculatio s Enter your ans w $8 $11 $15 $8 s6 maons. .。 example, an answer of $10,50,000 should be entered as 10.5s. Negative value should be indicated by a minus sign Project A Project 8s what are...

  • NPV Your division is considering two projects with the following cash flows (in millions): 0 1...

    NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$16 $7 $9 $10 Project B -$26 $14 $20 $11 What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A    $    million...

  • NPV Your division is considering two projects with the following cash flows (in millions): 0 1...

    NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$27 $13 $17 $8 Project B -$25 $14 $11 $2 What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A    $   million...

  • NPV Your division is considering two projects with the following cash flows (in millions): Project A...

    NPV Your division is considering two projects with the following cash flows (in millions): Project A -$11 $4 $7 Project B $20 $12 a. What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project A $ .02 million Project B $...

  • Your division is considering two projects with the following cash flows (in millions): 0 1 2...

    Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$27 $13 $17 $8 Project B -$25 $14 $11 $2 What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A:    $   million...

  • Your division is considering two projects with the following cash flows (in millions): 0 1 2...

    Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$35 $4 $14 $20 Project B -$15 $8 $5 $4 a. What are the projects' NPVS assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Xmillion...

  • Your division is considering two projects with the following cash flows (in millions): What are the...

    Your division is considering two projects with the following cash flows (in millions): What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A:    $   million Project B:    $   million What are the projects' NPVs assuming the WACC is 10%? Enter your answer in...

  • 11-4 NPV Your division is considering two projects with the following cash flows (in millions): 0...

    11-4 NPV Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$11 $4 $7 $1 Project B -$20 $12 $5 $9 What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign. Project...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT